Case study: How POWERGRID creates economic value for its stakeholders
Power Grid Corporation of India Limited (POWERGRID) is involved in bulk power transmission through its Inter-State Transmission system (ISTS) and is one of the largest Power Transmission Utilities in the world. POWERGRID is committed to creating, through its operations, enduring and sustainable value for all its stakeholders.
This case study is based on the 2019-21 Sustainability Report by POWERGRID, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
Generating long-term value for employees, shareholders and all its stakeholders, is a top priority for POWERGRID. Tweet This! In order to create economic value for its stakeholders POWERGRID took action to:
- create economic value for employees
- create economic value for shareholders
- create economic value for the government
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With this case study you will see:
- Which are the most important impacts (material issues) POWERGRID has identified;
- How POWERGRID proceeded with stakeholder engagement, and
- What actions were taken by POWERGRID to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2019-21 Sustainability Report POWERGRID identified a range of material issues, such as environmental compliance, occupational health and safety, ethics and integrity, legal compliance. Among these, creating economic value for its stakeholders stands out as a key material issue for POWERGRID.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups POWERGRID engages with:
To identify and prioritise material topics POWERGRID engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Shareholders/Investors
| · Annual General Meeting · Board meetings · Annual Report · Analyst meetings |
| Customers SEBs Telecom -Private firms Consultancy (National & International) | · Signing of Transmission Service Agreement (TSA) · Billing Collection & Disbursement Meetings · Meetings with customers |
| Funding Agencies (World Bank, ADB, IFC, KfW, etc.)
| · Appraisal/ Negotiation · Review Missions · Progress Reports · Discussions w.r.t. changes in regulatory framework, funding agencies safeguard policies etc. and their implications for transmission sector/POWERGRID |
| Employees
| · Employee Engagement Survey · Open House · Performance Review · Magazines · Cue · Regional Magazines (10) · Communique · Grid Darpan (Rajbhasha) · Candour (Vigilance) · Department specific meets · HRD Conclave · PNBC meetings · HR meetings |
| Community / PAPs
| · Public Consultation · Participation of community through community development · CSR initiatives |
| Government
| · Compliance to Laws · Comments/observations on proposed legislations · RPC (Regional Power Committee) |
| Regulators (SEBI / CERC/ BSE / NSE) | · Compliance/ commercial activities |
| Ministry of Power | · Performance monitoring |
| Ministry of Finance | · Coordination for various entitled grants |
| Suppliers & Contractors
| · Pre-award discussions · Open bid discussions (OBD) · Review meeting at various management levels · MPR of each contractor & suppliers · Joint discussions on technological advancements including Research & Development institutions · Feedback Sessions |
| Media | · Press Briefing/Invitations to events |
| Technological Institutions | · IITs / IISc for various emerging technologies · Leading academia Institutions for Emerging technologies |
What actions were taken by POWERGRID to create economic value for its stakeholders?
In its 2019-21 Sustainability Report POWERGRID reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2020-21, POWERGRID paid ₹ 2110.74 Crore for employee benefits.
- Creating economic value for shareholders
- In 2020-21, POWERGRID paid ₹ 6821.99 Crore in dividends.
- Creating economic value for the government
- In 2020-21, POWERGRID paid ₹ 2529.11 Crore in current tax and ₹ 560.03 Crore in deferred tax.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed
Disclosure 201-1 Direct economic value generated and distributed corresponds to:
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.1, 8.2
- Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure
- Targets: 9.1, 9.4, 9.5
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References:
This case study is based on published information by POWERGRID, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:
https://www.powergrid.in/sites/default/files/annual_reports/Sustainability_Report_2019-21.pdf
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